Sri Lanka Consolidated Acts

[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]

Consumer Credit Act (No. 29 of 1982) - Sect 8

Right of hirer to terminate agreement at any time

8.
(1) The hirer may, at any time before the final payment under a hire-purchase agreement falls due, and after giving the owner not less than fourteen days' notice in writing of his intention so to do and re-delivering or tendering at any the goods to the owner, terminate the hire-purchase agreement by payment or tender to the owner of the amounts which have accrued due towards the hire-purchase price -and have not been paid by him including the sum, if any which he is liable to pay under subsection (2).
(2) Where the hirer terminates the agreement under sub section (1), and the agreement provides for the payment of a sum named on account of such termination, the liability of the hirer to pay that sum shall be subject to the following conditions, namely
(a) where the sum total of the amounts paid and the amounts due in respect of the hire-purchase price immediately before the termination exceeds one' half of the hire-purchase price, the hirer shall not be liable to pay the sum so named ;
(b) where the sum total of the amounts paid and the amounts due in respect of the hire-purchase price immediately before the termination does not exceed one-half of the hire-purchase price, the hirer shall be liable to pay the difference between the said sum total and the said one-half; or the sum named in agreement, whichever is less
(3) Nothing in subsection (2) shall relieve the hirer from any liability for any hire which might have accrued due before the termination.
(4) Any provision in any agreement, whereby the right conferred on a hirer by this section to terminate the hire- purchase agreement is excluded or restricted or whereby any liability in addition to the liability imposed by this Act is imposed on a hirer by reason of the termination of the hire-purchase agreement by him under this section, shall be, void.
(5) Nothing in this section shall prejudice any right of a hirer to terminate a hire-purchase agreement under and by virtue of any other provisions of this Act.

[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]